...IN THE HIGH COURT OF JUSTICEQUEEN'S BENCH DIVISION THE ADMINISTRATIVE COURT B e f o r e :MR JUSTICE HOLMAN ________________________________________ Computer-Aided Transcript of the Stenograph Notes of WordWave International LimitedA Merrill Communications Company 165 Fleet Street London EC4A 2DYTel No: 020 7404 1400 Fax No: 020 7404 1424(Official Shorthand Writers to the Court) Mr Fred Banning, solicitor advocate, appeared on behalf of the Appellants Miss Christine Cooper (instructed by London Borough of Camden) appeared on behalf of the Respondents. ____________________HTML VERSION OF JUDGMENT ____________________Crown Copyright ©MR JUSTICE HOLMAN: The context of this case is rating, but the essential issue is as to the law of evidence and in particular the concept of weight. The appellants own the rateable premises in question. Did the mere production by them of a sheet of paper headed "Lease" discharge the evidential burden of showing that they were not entitled to occupy the premises in question so as not to be liable to pay the business rates? The essential facts may be stated very shortly, for most of them are not, and never have been, in dispute. The appellants, Pall Mall Investments Limited, own premises at the fifth and sixth floors of 34 to 35, Hatton Garden, London EC4. The London Borough of Camden, being the relevant rating authority and now the respondents to this appeal, set business rates. They duly demanded payment of them by the appellants for the period 1 April 2009 to 31 March 2011 in the total sum of 34,710.29. The appellants did not pay and the local authority issued a'summons for non-payment. This was finally heard by District Judge (Magistrates' Courts) James Henderson at Highbury Corner Magistrates' Court on 31 May 2011. He adjudged that the defendants (viz Pall Mall Investments) were liable to pay the aggregate amounts specified. Pall Mall Investments now appeal to this court by way of case stated.Before quoting the more material parts of the case stated, it is first necessary to describe aspects of the procedural history. The summons for non-payment of business rates was first issued on 16 February 2011, summoning Pall Mall Investments to a hearing on 17 March 2011. However, there was correspondence and various exchanges between Pall Mall Investments Limited and Camden such that it became clear that the liability to pay the business rates would be disputed. As I understand it, at all material times the premises in question were not in fact physically occupied by anybody. They were completely vacant, empty and unused. However, rating law prescribes that in the event that premises are in that way unoccupied, the liability to pay business rates falls upon the person or body entitled to occupy the premises. From an early stage, Pall Mall Investments Limited asserted to Camden that although they were at all material times the owners of the premises, they were not at the material time entitled to occupy them. In support of that assertion they produced to Camden a piece of paper headed with the word "Lease" of which I now scan a facsimile into the transcribed text of this judgment.As I understand it, Camden made clear in correspondence that they did not accept that piece of paper as being an authentic lease. As a result, and it is very important to stress this, two sets of directions were made by the magistrates' court. The first set of directions was made on 7 April 2011. This required Pall Mall Investments to serve their skeleton argument and witness statements within 21 days, namely by 28 April 2011. It then provided for Camden to serve their skeleton argument and witness statements 14 days thereafter, namely by 12 May 2011.Pall Mall Investments did not serve any witness statements by 28 April 2011 or indeed at all. As a result, Camden wrote to the magistrates' court and the court made a further set of directions on 12 May 2011. These required Pall Mall Investments to confirm in writing within 7 days details of all witnesses that they intend to call at the trial and to serve their witness statements within 7 days, namely by 19 May 2011. The directions then required Pall Mall to confirm in writing within 7 days whether they intend to adduce any other documents other than the lease agreement at the trial and requiring Pall Mall Investments to serve a'skeleton argument within 7 days setting out their legal position and explaining how they discharged the burden of proving that they were not in rateable occupation of the premises during the liability period. Finally, the directions provided that Camden should serve their skeleton argument and witness statements 14 days thereafter.There were indeed exchanges of skeleton arguments, but right up to the date of the hearing itself, namely 31 May 2011, Pall Mall Investments did not serve any witness statement at all. It is perhaps a moot point as to any cut-off date for Camden to serve any witness statements of their own, given that those directions clearly contemplated a'sequential exchange of witness statements beginning with all those by and on behalf of Pall Mall Investments. As I understand it, it was only very shortly indeed before the actual hearing that Camden did produce a'statement by an official, Kasia Woropajew. The position at the hearing on 31 May 2011 appears to have been as follows. No statement of any kind had been produced by, or on behalf of, Pall Mall Investments. As I understand it, the only persons present in the court at the hearing on behalf of Pall Mall Investments were their solicitor advocate, Mr Fred Banning, and a surveyor giving him technical assistance on rating matters. As I understand it, there was simply no one present at the court at all in any way directly connected with, or employed by, Pall Mall Investments; and, specifically, there were not present the Director or Secretary, whoever they may have been, who purport with illegible signatures to have signed the "Lease". On behalf of Camden, there was present their solicitor, Mr Siaf Alam, who conducted the case on their behalf that day and is indeed present in court here today, although now instructing counsel, Miss Christine Cooper. Having now described at some length that procedural background, I can quote verbatim from parts of the later case stated by the district judge dated 24 June 2011. "1. On 31st May 2011 Pall Mall Investments appeared before the Highbury Corner Magistrates' Court, on an application by the London Borough of Camden for a liability order in respect of business rates for ... (the property).2. Pall Mall Investments asserted that they were not responsible for the business rates in that they were not entitled to occupation of the property.3. I find the following facts set out in separate lettered paragraphs:(A) The statutory requirements were satisfied: The rate had been properly set, demands for rates from Pall Mall Investments had been sent in proper form and reminders sent in proper form. (B) The rates had not been paid by Pall Mall Investments. (C) Pall Mall Investments were the Freeholders of the relevant property. (D) Pall Mall Investments produced a document that purported to be a lease granted...Mall Investments were in rateable occupation.That there was no evidentiary basis upon which the court could conclude that the lease stated to commence on 1 April...2009 did not create a tenancy and therefore did not transfer the right of occupation.6. The court noted the following with respect to the form of lease...